Health Net 2002 Annual Report Download - page 69

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HEALTH NET, INC. | 6 7
NOTE 4—Investments
As of December 31, the amortized cost, gross unrealized holding gains and losses and fair value of our available-for-sale
investments were as follows:
2002
Gross Unrealized Gross Unrealized
(Amounts in thousands) Amortized Cost Holding Gains Holding Losses Carrying Value
Mortgage-backed securities $330,710 $ 4,553 $ (241) $ 335,022
Asset-backed securities 32,450 92 – 32,542
U.S. government and agencies 394,990 4,309 (1) 399,298
Obligations of states and other political subdivisions 60,521 1,815 – 62,336
Corporate debt securities 169,161 7,733 (1) 176,893
Other securities 2,814 153 (83) 2,884
$990,646 $18,655 $ (326) $1,008,975
2001
Gross Unrealized Gross Unrealized
(Amounts in thousands) Amortized Cost Holding Gains Holding Losses Carrying Value
Mortgage-backed securities $317,226 $ 2,469 $ (796) $ 318,899
U.S. government and agencies 245,260 2,399 (332) 247,327
Obligations of states and other political subdivisions 63,737 668 (290) 64,115
Corporate debt securities 211,988 1,366 (1,268) 212,086
Other securities 16,123 364 (2,354) 14,133
$854,334 $ 7,266 $ (5,040) $ 856,560
As of December 31, 2002, the contractual maturities
of our available-for-sale investments were as follows:
Estimated
(Amounts in thousands) Cost Fair Value
Due in one year or less $92,035 $92,611
Due after one year
through five years 454,021 465,421
Due after five years
through ten years 58,486 59,859
Due after ten years 52,770 53,367
Mortgage-backed securities 330,710 335,022
Equity securities (no maturity) 2,624 2,695
Total available for sale $990,646 $1,008,975
Proceeds from sales of investments available for sale
during 2002 were $347.9 million, resulting in realized
gains and losses of $8.8 million and $2.2 million, respec-
tively. Proceeds from sales of investments available for sale
during 2001 were $246.6 million, resulting in realized
gains and losses of $3.8 million and $2.4 million, respec-
tively. Proceeds from sales of investments available for sale
during 2000 were $31.9 million, resulting in realized gains
and losses of $.04 million and $.1 million, respectively.
NOTE 5—Property and Equipment
Property and equipment comprised the following as of
December 31:
(Amounts in thousands) 2002 2001
Land $ 13,182 $ 15,100
Internal use software and leasehold
improvements under development 9,875 14,315
Buildings and improvements 87,275 91,409
Furniture, equipment and software 478,406 511,090
588,738 631,914
Less accumulated depreciation 389,520 378,851
$199,218 $253,063
NOTE 6—Financing Arrangements
Senior notes payable, revolving credit facility and capital
leases and other financing arrangements comprised the
following as of December 31:
(Amounts in thousands) 2002 2001
Senior notes payable—noncurrent $398,821 $398,678
Revolving credit facility, unsecured –195,000
Capital leases –182
Total credit facility
and capital leases $–$195,182